This invention relates to a universal electronic transaction card ("UET card") for storing, transmitting and receiving personal, accounting and transactional information, to a UET card and communications systems, and to an electronic transaction system which utilizes UET cards. This invention also relates to a health care system utilizing UET cards. This invention also relates to methods of issuing an account authorization to a UET card, a method of transferring transactional and account information between a UET card and a personal computer or a mainframe computer, a method of using the UET card as a remote terminal for a mainframe computer, and a method of conducting an electronic transaction. The UET card of the present invention is capable of functioning as a number of different credit cards or other transaction or identification cards, which provides the user of the UET card with the capability of selecting one of many such cards for use in a particular transaction. The UET card of this invention has universal application for all personal and financial transactions, such as normal credit card usage of the type commonly associated with MASTERCARD, VISA, AMERICAN EXPRESS or automatic banking transactions (known as "ATM" transactions); health service transactions, such as physicians' services, hospital services, or home health care services; personal identification, including social security number, signature, photograph, and other personal information; employee information, such as employee identification numbers; and license information, including drivers licenses, vehicle registrations, professional licenses, and the like.
Presently, plastic cards are used for a variety of transactions, such as credit card purchases, and automatic banking transactions. Such credit cards include a magnetic strip that contains coded information for account information and, in some cases, a security code. The coded information on the magnetic strips is read by a device in the possession of a merchant, which transmits the account information to a central computer, which determines whether the account number is valid and whether the purchase is within the amount of credit available for that account. If the transaction is authorized, the card user receives a paper receipt as his or her record of the transaction, and the retail merchant also keeps a copy of the receipt as a record of the transaction. Later, usually within 30 days, the card user receives a written statement, which, in the case of a credit card, contains an invoice for payment. The user must then write a check to the credit card company to pay the amount due on the account. The disadvantage of the foregoing system is that at least two written documents are generated for the credit card user, at a substantial cost to the credit card institution.
In the case of ATM banking machines, a banking card is inserted into the card reader of the machine, which reads the coded account information and security code. The card user then enters a security code. If the security code is correct, the card user is then able to perform a banking transaction in which he or she may either deposit money, withdraw money, or check account balances. The ATM card user receives a paper receipt for the transaction. Later, the ATM card user also receives a paper record of all of his or her transactions for the month from the banking institution.
Every day, at least tens of millions of credit card and ATM transactions take place. Each transaction gives rise to the creation of several pieces of paper relating to billing for the goods or services purchased by credit card. Elimination of all or a substantial amount of paper associated with those transactions would reduce the costs of providing credit card services and would reduce the amount of waste generated and energy used as a result, and would improve the environment. Further, conversion of the manual billing system could eliminate substantial labor costs and also reduce the amount of human error in credit card transactions.
The same is true of the health care industry. A substantial amount of paper is generated by the health care industry, including insurance cards, medical identification cards, medical bills, medical history reports, and the like. A substantial amount of personal health care information must be manually entered for each visit by a patient to a health care provider. Each visit usually results in filling out one or more insurance forms that are, in turn, sent to insurance companies for processing. Approximately 15% of the cost of health care is spent on insurance companies who process payments and claims. The substantial reduction or elimination of paper work associated with health care, and the conversion to a paperless billing system could greatly reduce the labor costs associated with health care, and thereby reduce health care expenses considerably.
Most people carry a substantial number of cards, including multiple credit cards, insurance cards, drivers' licenses, airline cards, check identification cards, ATM cards, and employee identification cards. Carrying a substantial number of such cards is inconvenient. Financial accounting associated with these cards related to paying bills, keeping track of accounts, budgeting, planning and the like, is manual, cumbersome, time consuming, and difficult to manage and maintain. Further, such cards are replaced on a periodic basis. Thus, a substantial amount of plastic must be used to make the cards, paper must be used to mail the cards to users, and a substantial amount of paper and plastic is eventually thrown away, resulting in waste, degradation of the environment, and a loss of money.